Don't Regift Used Items And Other Holiday Tips

ALEX COHEN, host:

Holiday shopping will be tight this year. According to the National Retail Federation, each American will spend an average of $832. That's just a slight increase over last year, which is not a good economic sign. Here with some advice for how to shop for the holidays in tough times is Day to Day's personal finance contributor, Michelle Singletary. Hi, Michelle.

MICHELLE SINGLETARY: Hello.

COHEN: So, let's just say you don't have a little nest egg tucked away for holiday shopping. What should you do, what's your advice?

SINGLETARY: You know, honestly, and I know that this is not what some people are going to want to hear, if you have any type of debt that doesn't involve say a fixed debt, like your car or your home, you should not be shopping this holiday season. Times are just too tough to buy things for people who need nothing. So, if you've got credit card debt, you've got student loan debt, you're behind on your bills, or you fear that you may be losing your job, you're in one of those industries that is feeling the affects of the economy, this holiday season it should be, I'm going to give you a gift coupon for some babysitting.

COHEN: An IOU?

SINGLETARY: Absolutely. And I'm serious about that, and I know people get into the spirit of the holiday, and they want to give, but right now you need to preserve cash. And if you've not saved for this, and you're going to go more into debt, or you've already got debt on your credit card, you cannot be as generous as you may have been in the past.

COHEN: So, let's say you do have some money, but you don't have a whole lot, where do you draw the line for gift giving? You know, do you give to all of your kids' teachers and the bus drivers and the newspaper guy? Where do you draw the line?

SINGLETARY: You know - you start with a budget, and that's how you know where that line is. You say, I've got this amount of money to spend that I've saved up, and this is all that I have, and then when you do that, you will see that that list is going to get cut short. You can't give to the bus driver, and they may not even be allowed to take cash or gifts anyway. And you know, I talked to a lot of teachers, I've got three kids in public schools, and I've asked them you know, do you like all these gifts? And they say, honestly, a nice note of appreciation would be great. Or have the parents say, you know what, I'll come in and help you during the year, or if there's some things that you need to do. There's some non-monetary things that you can do, to show your appreciation to those folks that would normally be on your list this time of year.

COHEN: Michelle, we've talked with you in the past about the concept of regifting as an early holiday present to all of our listeners. Will you remind us, what are the basic rules here?

SINGLETARY: OK. Well, regifting basically involves giving someone something that you've received as a gift that wasn't appropriate for you. And I'm not talking about something that has been in your closet or has been used, and so here are my three rules about regifting.

One, don't regift used items. You would think that this would be common sense and obvious, but it's not. And the exception would be if there's a family heirloom or something that you really treasured in your family, that you want to give to someone. Second, rewrap your gifts. You know, take the old wrapping paper off, make sure there's no old tags, or cards attached, and wrap it very nicely. And thirdly, keep track of the original giver. You don't want to give someone a gift that they gave you.

COHEN: Michelle, moment of truth, when you are regifting, do you tell the person you're giving this gift to that it is a previously used or received gift?

SINGLETARY: Don't ask, don't tell.

(Soundbite of laughter)

SINGLETARY: If you get a gift, don't ask if it's a regift. If you give it, don't tell. Now, of course, you don't want to put it in a Tiffany box and pretend that it's an expensive gift, cause that's a white lie, but I think it's perfectly fine not to tell someone. And it's rude to ask, is this a regift? I had someone ask me that, it's like none of your business. Is this something that you would like? If so, say thank you, and that's all that is required.

COHEN: Michelle, your secret is safe with me. Michelle Singletary is Day to Day's personal finance contributor. She also writes the Color of Money column for the Washington Post. Thanks, Michelle.

SINGLETARY: You're so welcome.

COHEN: More to come on Day to Day.

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